Bojangles’ sets terms, hits secondary market; Cambium Learning first-lien loan breaks

By Sara Rosenberg

New York, Dec. 18 – Bojangles’ Inc. modified talk and then finalized the spread on its first-lien term loan, and sweetened the original issue discount as well as the call protection before freeing up for trading on Tuesday evening.

Another deal to emerge in the secondary market during the session was Cambium Learning Group Inc., with its first-lien term loan bid in line with its original issue discount.

Bojangles’ tweaks loan

Bojangles’ set pricing on its $300 million seven-year covenant-light first-lien term loan (B2/B) at Libor plus 475 basis points, the low end of revised talk of Libor plus 475 bps to 500 bps that was announced on Tuesday morning, and the wide end of initial talk of Libor plus 450 bps to 475 bps, according to a market source.

Furthermore, the original issue discount talk on the first-lien term loan was adjusted to 98 from 99.5 and the 101 soft call protection was extended to one year from six months, the source said.

As before, the first-lien term loan has a 0% Libor floor.

The company’s $425 million of credit facilities also include a $50 million revolver (B2/B) and a $75 million eight-year covenant-light second-lien term loan (Caa2/CCC+).

Pricing on the second-lien term loan finalized in line with talk at Libor plus 850 bps with a 0% Libor floor and a discount of 98, and the hard call protection was unchanged at 102 in year one and 101 in year two.

Commitments were due at 3 p.m. ET on Tuesday, moved up from 5 p.m. ET.

Bojangles’ starts trading

Late in the session, Bojangles’ bank debt broke for trading, with the first-lien term loan quoted at 98 bid, 99˝ offered, another source added.

Citigroup Global Markets Inc., KKR Capital Markets, KeyBanc Capital Markets and Fifth Third Bank are leading the deal. Citi is the left lead on the first-lien and KKR is the left lead on the second-lien. Citi is the administrative agent on the first- and second-lien debt.

The credit facilities will be used with up to $390 million in equity to fund the buyout of the company by Durational Capital Management LP and the Jordan Co. LP for $16.10 per share.

Closing is expected on Jan. 7.

Bojangles’ is a Charlotte, N.C.-based restaurant operator and franchisor.

Cambium frees up

Cambium Learning Group’s credit facilities began trading in the afternoon, with the $320 million seven-year first-lien term loan (B2/B-/BB) quoted at 95 bid, 95ľ offered, a trader said.

Pricing on the first-lien loan is Libor plus 450 bps with 0% Libor floor and it was sold at an original issue discount of 95. The loan has 101 soft call protection for one year and 50 bps MFN for life.

During syndication, the discount on the first-lien term loan was changed from 99.5 and the call protection was extended from six months.

The company’s $500 million of credit facilities also include a $50 million revolver (B2/B-/BB) and a $130 million second-lien term loan (Caa2/CCC/CCC+).

The second-lien term loan is priced at Libor plus 850 bps with a 0% Libor floor and was talked with a discount of 95 after widening from 99. This tranche has call protection of 102 in year one and 101 in year two.

Syndication of the second-lien term loan is still wrapping up and the debt will allocate once that is completed, another source added.

Cambium lead banks

RBC Capital Markets, Deutsche Bank Securities Inc., Barclays and BMO Capital Markets are leading Cambium’s credit facilities.

Proceeds were used to help fund the buyout of the company by Veritas Capital for $14.50 in cash per share.

Closing on the transaction was announced on Tuesday.

Cambium is a Dallas-based educational technology solutions company.

Priority Payment allocates

In other news, Priority Payment Systems allocated on Tuesday its fungible $130 million add-on term loan B, according to a market source.

Pricing on the add-on term loan is Libor plus 500 bps with a 1% Libor floor and it was sold at an original issue discount of 99.5.

During syndication, pricing on the add-on term loan was increased from Libor plus 475 bps, and the company eliminated plans to reprice its existing term loan B to Libor plus 475 bps from Libor plus 500 bps.

SunTrust Robinson Humphrey Inc. is leading the deal that will be used to fund acquisitions and repay revolver borrowings.

Priority Payment is an Alpharetta, Ga.-based payment technology company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.